Finra Launches Probe of Retail Broker Routing Practices

'Sweep Letters' Being Sent to About 10 Brokers

WASHINGTON—The Financial Industry Regulatory Authority is pressing retail brokers for details about how they route customer orders amid mounting concerns some brokers might be sending orders to venues that provide the highest payments but not the best price for investors.

Finra is sending "sweep letters" to about 10 brokers this week after studying routing patterns by the firms on its Order Audit Trail System, which tracks stock-market trading action, said Tom Gira, executive vice president of Finra's market...